Finance Bill — Clause 1 — Report on Impact of Additional Rate of Income Tax for Income Over £150,000 — 18 Apr 2013 at 13:15

Oliver Letwin MP, West Dorset voted against requiring a report on impact of changing the additional rate of income tax, which applies to income over £150,000.

The majority of MPs voted against requiring a report on the impact of changing the additional rate of income tax, which applies to income over £150,000.

At the time of the vote, during the 2013-14 tax year the additional rate was 45% charged on income over £150,000 per year; prior to that, since its introduction in 2010-11 the rate had been 50%[1][2]. The report the majority of MPs voted against would have reviewed the impact both of the rate cut for 2013-14 and of increasing the rate to back 50% for 2014/15.

The text of the rejected proposed amendment to the Finance Bill stated:

(1) The Chancellor of the Exchequer shall, within three months of the passing of this Act, publish a report on the additional rate of income tax.

(2) This report shall review the impact upon Exchequer receipts of setting the additional rate to 50 per cent. in tax year 2014-15.

(3) The report shall review what impact reducing the additional rate for 2013-14 will have on the amount of income tax currently paid by those with taxable incomes of

(a) over £150,000 per year; and

(b) over £1,000,000 per year.’.

Had it been accepted the above would have been added to clause one of Bill[3][4].

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